On the distribution of federal taxes and expenditures, and the new war between the states

Randall Holcombe and Asghar Zardkoohi

Public Choice, 1983, vol. 40, issue 2, 165-174

Abstract: As federal government expenditures have grown, there has been an increasing awareness of the distribution of taxes and expenditures across states. States in the Northeast have claimed that sunbelt states have been getting more than their fair share of federal spending, with the sunbelt states denying the charge. A theory of political coalitions is developed to explain why the sunbelt should be unable to receive differentially high expenditures, although the sunbelt may pay less than a proportional amount in taxes because of its relatively low income. An empirical test shows that the data are in agreement with this theory. Copyright Martinus Nijhoff Publishers 1983

Date: 1983
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DOI: 10.1007/BF00118518

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